Indian-Origin Telecom Executive Accused in $500M Loan Fraud Involving BlackRock Partner

Post by : Bianca Suleiman

A major cross-border financial controversy has emerged after Bankim Brahmbhatt, an Indian-origin entrepreneur who runs US-based Broadband Telecom and Bridgevoice, was accused of engineering a $500 million loan fraud that implicated HPS Investment Partners, the private-credit arm affiliated with BlackRock, among other lenders.

Reports in the Wall Street Journal say HPS and its financing partner BNP Paribas are attempting to trace and reclaim what sources describe as a startling scheme that has left institutional creditors exposed.

The complaint filed in August alleges Brahmbhatt’s firms secured financing by presenting millions of dollars in accounts receivable that were purportedly owed by telecom clients. According to the suit, those receivables were fabricated and used as loan collateral.

When lenders sought to verify the listed invoices, investigators concluded that substantial sums had been rerouted to offshore accounts in India and Mauritius. The alleged fraud involved falsified invoices, sham contracts and bogus email correspondence intended to convey a veneer of legitimacy.

HPS first provided financing in September 2020, increasing its exposure to about $385 million by early 2021 and to roughly $430 million by August 2024. Insiders told the WSJ that nearly half of the loans were financed through BNP Paribas.

The case began to unravel in July after an HPS staff member identified irregularities in customer email addresses tied to Carriox Capital, an invoice-financing entity connected to Brahmbhatt. When confronted, the suit says, Brahmbhatt downplayed concerns and shortly thereafter disappeared.

By the time investigators reached Carriox’s Garden City, New York office it was closed. Neighbours reported the residence appeared vacant, though several luxury vehicles — including two BMWs, a Porsche, a Tesla and an Audi — were observed parked outside and a package remained unopened at the front door.

HPS officials now suspect Brahmbhatt returned to India, but his exact location is not publicly known. Multiple companies associated with him, including Carriox Capital, have since sought Chapter 11 protection in the United States.

Brahmbhatt, described in records as a telecom industry veteran with more than three decades of experience, founded the Bankai Group, which supplies telecom services and infrastructure globally. His LinkedIn profile has been removed and he has not issued a public response to the allegations.

Industry observers say the episode highlights vulnerabilities in asset-backed lending when documentation and counterparty verification are compromised, and it has prompted intensive review by the affected lenders and regulators.

The unfolding legal and forensic work aims to map the flow of funds and establish liability for what is now being treated as one of the more significant loan frauds to surface in recent years, with major financial institutions seeking restitution.

For HPS, BNP Paribas and other creditors, the case represents an urgent test of recovery mechanisms and due-diligence processes amid growing scrutiny over private credit underwriting.